Watch Lists Will make The Dogs of the Dow Theory Transparent

NEW YORK (Dec. 18, 2001) – Dow Jones Indexes today introduced the Dow 10 and The Dow 5 Indexes, which are subsets of the Dow Jones Industrial Average.

The Dow 10 Index measures the performance of the ten highest yielding stocks in the Dow Jones Industrial Average, a strategy commonly referred to as the “Dogs of the Dow” and which typically consists of holding these 10 Dow stocks for one year.

The Dow 5 Index tracks the performance of the five lowest-priced stocks of the Dow 10 Index.

Michael A. Petronella, managing director, Dow Jones Indexes said, “We decided to publish official Dow 10 and Dow 5 Indexes because there is demand for investment products linked to these indexes. The index methodology and portfolios will now be consistent, clear and transparent–and comes from the same company that publishes The Dow Jones Industrial Average on which the strategy is based.”

The Dow 10 and The Dow 5 Indexes are calculated using an equal-weighted methodology. A watch list for the indexes will be published monthly. The indexes will be available on both a Price Return and Total Return basis back to 12/31/1986.

The watch list will be generated at the end of each month after the top ten yielding stocks are selected for that year. In case of a component change in the Dow Jones Industrial Average, the highest-ranking company on the most current watch list will be added to the Dow 10 and The Dow 5 index at the weight of the departing company.

Dow Jones Indexes will begin publishing a watch list for The Dow 10 and The Dow 5 Indexes on a daily basis beginning December 20, 2001, based on updated dividend data and closing prices from the previous trading day.

Both The Dow 10 and The Dow 5 Indexes are set at 189.60 on the base date of December 31, 1986. That number is equivalent to 10% of the Dow Jones Industrial Average as of that date.

End-of-day values of both indexes will be available through the major data vendors. The suggested ticker symbols are DOW10 and DOW5. The watch list and components will also be available on our web site: http://www.djindexes.com.